Which of the following statements is correct in relation to the recognition of expenses?
A)Under the Conceptual Framework,the recognition of expenses is based on the matching process.
B)The recognition of expenses is not subject to the same degree of regulation as revenue.
C)Under the Conceptual Framework,recognition of expenses is not tied to the matching process.
D)Individual accounting standards do not need to be consulted to determine the appropriate treatment for particular types of expenses.

Question

Quizplus · Accepted Answer

Under the Conceptual Framework, the recognition of expenses is not tied to the matching process but rather to the decrease in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities.

Which of the Following Statements Is Correct in Relation to the Recognition